This report assesses Pakistan’s corporate governance policy framework. It highlights recent improvements in corporate governance regulation, makes policy recommendations, and provides investors with a benchmark against which to measure corporate governance in Pakistan.
... Exibir mais + The report focuses on the governance of large and listed companies, but includes a special section on the governance of public sector companies. The report highlights that corporate governance framework for listed companies has improved in recent years as the government has enhanced the legal and policy framework, and key institutions have grown in sophistication and maturity. Much more can be done to address corporate governance in Public Sector Companies. The findings of the Report on the Observance of Standards and Codes (ROSC) are based on the Detailed Country Assessment (DCA) of the OECD Principles of Corporate Governance, which is summarized in the tables at the end of each section. According to the World Bank methodology used to assess compliance with the 72 OECD Principles, 20 Principles were fully implemented, 33 were broadly implemented, 16 principles were partially implemented, and three were not applicable. A comparison with the 2005 Corporate Governance ROSC shows the level of improvement in the corporate governance framework; in 2005 out of a total of 32 applicable principles, only 4 were fully implemented, 17 were broadly implemented, 10 were partially implemented and 1 was reported as not implemented. The report (and this summary) is organized into five sections: The commitment of the public and private sectors to reform; Shareholder rights; Disclosure and transparency; Boards of directors and Public sector companies.
Exibir menos -

The Indonesia Corporate Governance Manual discusses key corporate governance elements that have been contextualized to take into account current Indonesian laws and regulations as well as international best practices.
... Exibir mais + While it is recommended to read the entire Manual to gain a full understanding of the corporate governance framework in Indonesia, it is not necessary to read all the chapters in chronological order. The Manual includes examples, illustrations, and checklists to aid clarity and understanding.
Exibir menos -

This Technical Note assesses the corporate governance of state-owned enterprises (SOEs) in Azerbaijan with a view to supporting the government’s efforts to bolster economic development.
... Exibir mais + Mutually reinforcing recommendations are closely linked and aim to increase accountability across the whole ownership structure of SOEs, from their ultimate owners, the citizens, to their employees. The Note outlines international good practice, summarizes current practices in Azerbaijan, and indicates areas for consideration to improve SOE corporate governance in Azerbaijan. The Note was prepared by a World Bank Group team, based on research and consultations during January - October 2017, to (i) analyze current SOE governance frameworks and practices in Azerbaijan and identify main deviations from international good practices; and (ii) develop a series of policy recommendations for further reforms in strengthening SOEs governance and improving their effectiveness. This work may serve as a basis for further collaboration between the World Bank and the Government of Azerbaijan towards SOE reform and related policy considerations. Given the significance of SOEs and a range of important socio-economic and political-economy related factors, improving SOEs governance in Azerbaijan is a significant challenge. Implementation of any of the recommendations contained in this Note should form part of a broader strategy for SOEs linked to economic and sector strategies in Azerbaijan. This Note aims to build on the priorities outlined by the Strategic Roadmaps for the national economy and main economic sectors of Azerbaijan for 2016-2020, signed by the President of Azerbaijan on December 6, 2016. The Roadmaps re-affirm Azerbaijan’s priorities in diversification of its oil-dominant economy, reduce the State’s participation in the existing state-owned enterprises, and enable more private sector led growth.
Exibir menos -

This Technical Note assesses the corporate governance of state-owned enterprises (SOEs) in Azerbaijan with a view to supporting the government’s efforts to bolster economic development.
... Exibir mais + Mutually reinforcing recommendations are closely linked and aim to increase accountability across the whole ownership structure of SOEs, from their ultimate owners, the citizens, to their employees. The Note outlines international good practice, summarizes current practices in Azerbaijan, and indicates areas for consideration to improve SOE corporate governance in Azerbaijan. The Note was prepared by a World Bank Group team, based on research and consultations during January - October 2017, to (i) analyze current SOE governance frameworks and practices in Azerbaijan and identify main deviations from international good practices; and (ii) develop a series of policy recommendations for further reforms in strengthening SOEs governance and improving their effectiveness. This work may serve as a basis for further collaboration between the World Bank and the Government of Azerbaijan towards SOE reform and related policy considerations. Given the significance of SOEs and a range of important socio-economic and political-economy related factors, improving SOEs governance in Azerbaijan is a significant challenge. Implementation of any of the recommendations contained in this Note should form part of a broader strategy for SOEs linked to economic and sector strategies in Azerbaijan. This Note aims to build on the priorities outlined by the Strategic Roadmaps for the national economy and main economic sectors of Azerbaijan for 2016-2020, signed by the President of Azerbaijan on December 6, 2016. The Roadmaps re-affirm Azerbaijan’s priorities in diversification of its oil-dominant economy, reduce the State’s participation in the existing state-owned enterprises, and enable more private sector led growth.
Exibir menos -

Corporate citizenship - a commitment to ethical behavior in business strategy, operations, and culture - has been on the periphery of corporate governance and board leadership, linked mainly to corporate reputation.
... Exibir mais + However, in today’s globalized and interconnected world, investors, creditors, and other stakeholders have come to recognize that environmental, social, and governance responsibilities of a company are integral to its performance and long-term sustainability. Today, these concerns help determine profits. For companies to operate successfully and sustain growth, boards must incorporate these new dimensions into their core decision making processes. The global financial crisis has heightened the need for corporate boards of directors to provide well-informed strategic direction and engaged oversight that stretches beyond short-term financial performance. A new vision of business is emerging - one where a set of core values, encompassing human rights, environmental protection, and anti-corruption measures, guide the board’s oversight, relationship with management, and accountability to shareowners. Good corporate governance is the glue that holds together responsible business practices, which ensures positive workplace management, marketplace responsibility, environmental stewardship, community engagement, and sustained financial performance.
Exibir menos -

The G20/Organization for Economic Co-operation and Development (OECD) Principles of Corporate Governance help policy makers evaluate and improve the legal, regulatory, and institutional framework for corporate governance, with a view to supporting economic efficiency, sustainable growth and financial stability.
... Exibir mais + First published in 1999, the Principles have since become an international benchmark for policy makers, investors, corporations and other stakeholders worldwide. They have also been adopted as one of the Financial Stability Board’s Key Standards for Sound Financial Systems and form the basis for the World Bank Reports on the Observance of Standards and Codes (ROSC) in the area of corporate governance. This edition contains the results of the second review of the Principles, conducted in 2014 -2015.
Exibir menos -

Board Evaluation Practices: Experiences from the Latin American Companies Circle (“BE Practices”) was prepared by the Companies Circle and its Board Evaluation Working Group.1In preparation for this report, and in order to collect the relevant information for analyzing the companies’ practices, the Working Group conducted a survey among the Companies Circle members.
... Exibir mais + This information was used to develop a set of good practices to be considered by other Latin American companies when undertaking Board evaluations.2Moreover, the Working Group also reviewed the recent market literature on Board evaluation and presented the results of a survey of fifteen out of seventeen members of the Companies Circle that conduct Board evaluations.This report also covers Board evaluation practices employed by Latin American companies and their motivation, considering its scope and tools. The document presents additionally what companies are expected to do as a result of the evaluation process to improve Board performance. This document first presents the different types of Board evaluations. Then it describes existing practices when conducting Board evaluations based on the experiences of the Companies Circle. Section D presents the main conclusions and useful practices to be considered by Latin American companies that undertake Board evaluations. The main findings of the study are: (i) Board evaluations have been increasingly recognized in the region as a useful tool to improve the performance of the Board; (ii) trust in the credibility and confidentiality of the evaluation process is a key factor for its success; (iii) in the path to build an effective Board, evaluations require the commitment of directors to undergo a thorough review to identify the strengths and areas for improvement; (iv) The main results of the evaluation should be inputs to an action plan, followed up by the Board.
Exibir menos -

Good corporate governance is a basic element for healthy companies and a key to sustainable private sector development. Strong governance fundamentals contribute to better management and more effective boards, leading to enhanced operational efficiency, reduced risk, improved decision making, and increased valuations, among other business benefits.
... Exibir mais + This publication represents a unique collaborative effort to assess the state of corporate governance around the world in the wake of the 2008 global financial crisis. It draws on the expertise of the IFC Corporate Governance Private Sector Advisory Group and other practitioners in this important field, providing a fascinating and detailed accounting of the range of changes that have taken place in the past few years as the corporate governance agenda has been elevated. The report highlights notable improvements in board practices, control environment, shareholder protection, and transparency and disclosure. It also points to progress on more effective application, monitoring, and enforcement of corporate governance codes. Importantly, the publication identifies future directions where more work is needed, such as increased commitment at the national level to prioritize the corporate governance agenda. Specifically, Part A discusses developments from global or regional groups involved in corporate governance. Part B addresses developments in corporate governance practice, and Part C looks at developments in corporate governance codes and standards.
Exibir menos -

This paper spotlights the efforts to create a more open, accountable, and transparent business sector throughout East Asia and the Pacific (EAP).
... Exibir mais + IFC has been active in promoting corporate governance in EAP for the past several years. IFC’s approach is to leverage its private sector development expertise – gained through its investment activity and World Bank Group knowledge – to promote good governance practices at different levels of a market. This includes working with individual firms, strengthening laws and regulations, building capacity of partners and market intermediaries, and supporting various awareness raising activities. The goal is to help both individual firms and entire markets attract investment and build vibrant, sustainable private sectors. This summary will provide a snapshot of initiatives around the region and facilitate knowledge-sharing among our partners in both the public and private sectors.
Exibir menos -

This publication spotlights the ongoing efforts to create a more open, accountable, and transparentbusiness sector throughout East Asia and the Pacific (EAP).
... Exibir mais + IFC has been active in promotingcorporate governance in EAP for the past several years. IFC’s approach is to leverage its privatesector development expertise – gained through its investment activity and World Bank Groupknowledge – to promote good governance practices at different levels of a market. This includesworking with individual firms, strengthening laws and regulations, building capacity of partners andmarket intermediaries, and supporting various awareness raising activities. The goal is to help bothindividual firms and entire markets attract investment and build vibrant, sustainable private sectors. This paper provided assistance to regulators in various other markets as they revised their corporate-governance codes and regulations in support of investment climate improvements. This summary will provide a snapshot of initiatives around the region and facilitateknowledge-sharing among our partners in both the public and private sectors.
Exibir menos -

Good corporate governance, well-defined shareholder rights, strong internal controls, high levels of transparency and disclosure, and an empowered board of directors, can improve a companys performance and profitability, and make it more attractive to investors and lenders.
... Exibir mais + For this reason, corporate governance has become a hot topic in the business world, especially in emerging markets where governance improvements can improve a firms access to capital and access to international markets. Financial institutions can offer corporate governance-targeted finance aimed at strengthening client business performance while enhancing credit quality and bottom line portfolio returns. This market has great potential and IFC specialists are uniquely qualified to help banks access it. IFC is developing corporate governance lending with leading banks in Brazil, Colombia, Mexico, Peru, and South Africa. IFCs offering includes: global expertise in corporate governance, flexible financing, corporate governance methodology, and technical assistance.
Exibir menos -

On August 5, 2014, International Bank for Reconstruction and Development (IBRD) Board of Governors adopted resolution number six hundred and thirty-six.
... Exibir mais + It was resolved that effective July 1, 2014, the remuneration of the Executive Directors of the World Bank Group and their Alternates pursuant to section 13(e) of the by-laws shall be paid in the form of a salary without a separate supplemental allowance, and such salary shall be paid at the annual rate of $252,720 for Executive Directors and $218,620 for Alternate Executive Directors.
Exibir menos -

International Finance Corporation (IFC), a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives.
... Exibir mais + The Indonesia Corporate Governance Manual (CG Manual) was commissioned by IFC as part of the Indonesia Corporate Governance Program that IFC is implementing in Indonesia since 2012. As part of this Program, IFC has established a formal cooperation with Otoritas Jasa Keuangan (OJK). A key product of this cooperation between IFC and OJK is the development of this Indonesia Corporate Governance Manual, which serves as a learning instrument to benchmark existing standards and practices in Indonesia with internationally recognized best practices. In this respect, this Corporate Governance Manual should be considered as a major tool for Corporate Governance in Indonesia as it targets a wide spectrum of stakeholders, such as directors and commissioners, academics, policymakers, corporate governance experts and more generally, individuals and institutions interested to know about the corporate governance framework in Indonesia. IFC is happy to be part of this initiative with OJK and remains committed to helping raise governance standards across the market and contribute to a sustainable private sector in Indonesia. The Fifteen chapters of the Manual focus on the key corporate governance issues. All issues are closely examined through Indonesian law and regulations and when applicable, internationally recognized best practices. While it is recommended to read the entire Manual to gain a full understanding of the corporate governance framework in Indonesia, it is not necessary to read all the chapters in chronological order. The reader is encouraged to begin with a topic of interest and follow the links and references included in the text for guidance to other chapters. Examples, illustrations, and checklists are included to make the Manual clear and useful.
Exibir menos -

This report assesses Vietnam's corporate governance policy framework. It highlights recent improvements in corporate governance regulation, makes policy recommendations, and provides investors with a benchmark against which to measure corporate governance in Vietnam.
... Exibir mais + It is an update of the 2006 Corporate Governance ROSC for Vietnam. Good corporate governance enhances investor trust, protects minority shareholders, and encourages better decision making and improved relations with workers, creditors, and other stakeholders. Better investor protection can lower the cost of capital and encourage companies to list and raise funds through equity markets. Good corporate governance also helps to ensure that these companies operate more transparently and efficiently. Vietnam has undertaken important corporate governance reforms in recent years. However protecting minority shareholders, fully tapping the potential of capital markets, and professionalizing boards and management will require that reform continues. Key reforms include: Developing an action plan to address core failings of state owned enterprise corporate governance, including replacing the current state economic groups, or SEG oriented system with one that has more accountable state ownership; and Increasing transparency with greater auditor independence, better disclosure of ownership and control, and convergence of accounting standards with International Financial Reporting Standards, or IFRS.
Exibir menos -

This our inaugural issue, shared a snapshot on where corporate governance standards and awareness stood in China, Indonesia, Mongolia, and Vietnam, and highlighted how IFC was working to bring improvements to corporate practices across East Asia and the Pacific.
... Exibir mais + In this issue, we move from the broad view to a more specifi c look at individual projects that are pushing business and regulatory improvements across the region. In China, progress in improving the CG practicesin publicly listed companies, a growing roster of well-qualified CG trainers, and the reach of CG into Chinese rural banks. In Indonesia, look at women in the board room and what can be done to improve their current board representation, while also advancing corporate governance curriculums in Indonesia’s universities. In Mongolia, pleased to see companies and banks improving theircompetitiveness through better governance practices, and note the extended outreach of CG awareness to Darkhan, Mongolia’s third largest city. Finally, in Vietnam can already see the impact of new legislation on board CG behavior and practices. With two new circulars, the government and regulators are giving clear signs that the pace of corporate reform must be accelerated. In this time of economic challenge and increased competition, corporate governance is no longer simply an advantage for companies, but rather an absolute imperative. orporate leaders across the region will continue to realize how good corporate governance can help deliver value to their companies.
Exibir menos -

As the importance of Corporate Governance increases, an awareness and understanding of the different relevant regulations becomes of paramount value.
... Exibir mais + The importance and value of Corporate Governance is not the core of this publication. The publication is built around the premise that Corporate Governance is important and increasingly becoming of significant importance for growth, continued success and sustainability. Accordingly, this publication aims to identify, highlight and summarize the different codes of Corporate Governance along with other relevant regulations that impact Corporate Governance that are available in Jordan. The authors intend to address the different codes with respect to the principles of Corporate Governance as defined by the Organization of Economic Cooperation and Development (OECD); namely: ensuring the basis for an effective Corporate Governance framework; the rights of shareholders and key ownership functions; the equitable treatment of shareholders; the role of stakeholders in Corporate Governance; disclosure and transparency; and the responsibilities of the Board. This comparative study will provide an overview of how each code (or relevant regulation) addresses the different principles and to what extent. Since certain Corporate Governance practices tend to overlap across different principles and cover broad practices, we have found that it would be best in this study to provide a detailed assessment of different practices and requirements based on different dimensions. The dimensions the authors use are those defined based on best practices as identified by the International Finance Corporation (IFC) as follows: commitment to Corporate Governance; board functioning; management control environment; disclosure and transparency; and shareholder and stakeholder relations.
Exibir menos -

Stock exchanges around the world have launched Corporate Governance Indices (CGIs), sometimes as part of a broader Environment, Social, and Governance (ESG) initiative.
... Exibir mais + The comprehensive analysis of these indices presented in this study is the first of its kind, and it reveals that CGIs have a positive impact, enhancing legal and regulatory frameworks by extending governance criteria to develop objective and measurable benchmarks. The study also shows that CGIs present companies with an opportunity to differentiate themselves in the market and, ultimately, offer companies an incentive to adopt better governance practices. Nevertheless, as the process for vetting and evaluation of companies for inclusion in the indices continues to evolve, access to underlying methodologies, disclosure of the ratings and self-assessments of individual companies, and of overall monitoring processes and procedures can still be enhanced. This study reviews the different approaches used by stock exchanges to build indices incorporating corporate governance. In the case of ESG indices, the focus is on the governance component of these indices. The study also draws lessons from the stock exchange's experiences and highlights success factors and shortcomings. In particular it addresses the following key questions: (i) what are the key drivers for stock exchanges to launch CGIs; (ii) what are the critical building blocks in the construction of a CGI; (iii) what are the risks faced by those investing in CGIs.
Exibir menos -